Government Prepares Ministerial Regulation on Cooperative-Managed Mining

The Ministry of Cooperatives is currently preparing Ministerial Regulation on the management of mining by Cooperatives. The Minister of Cooperatives, Ferry Juliantono, confirmed that the drafting process has reached its final stage and is currently being harmonized with the relevant ministries.

“We are currently harmonizing the draft at the Ministry of Law, together with the Ministry of Energy and Mineral Resources (“ ESDM ”), the Ministry of Micro-, Small- and Medium-scale Enterprises (MSMEs), and the Ministry of Investment,” Ferry told Hukumonline.

Ferry explained that the new regulation will govern administrative provisions for mineral and coal mining that are managed by Cooperatives within a Mining Business License Area (“ WIUP ”). One of the key points in the regulation is that the establishment of new cooperatives wishing to manage mines will be permitted once the regulation is enacted.

Additionally, one of the main requirements for a cooperative to manage mining operations is that its members must consist of residents living around the WIUP. “So that the benefits can be received by the communities around the mining area,” he added.